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Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: | Negotiable Instruments & Basics

Q4: If there is a discrepancy between the amount written in words and the amount written in figures on a cheque, which legal rule applies?

A
The cheque is immediately dishonoured for uncertainty
B
The amount in figures is considered final
C
The lower of the two amounts is paid
D
The amount in words overrides the amount in figures
✅ Correct Answer: D
In cases of a mismatch between the amount in words and figures, the Negotiable Instruments Act dictates that the amount in words overrides the amount in figures.